Friday saw the 10th day of a negative GOFO (Gold is out of contango and in backwardation).
- This is good for physical Gold, and very bad for the fraudulent paper Gold.
Friday also saw JPM's Gold inventory drop 66% to 46,000oz.
- JPM has 502,000oz of Gold standing against it for the June contract. The majority of the 30.7 tons of Gold standing for delivery from June has not left JPM's vault.
- Actually, none of the 9.5 tons Gold delivery notices from May have yet left JPM's vault either.
Huh?
[For Ben Bernanke, who professes not to understand Gold: This makes perfect sense, since JPM's customer inventory of Gold is only 1.43 tons.]
For the rest of us, the last chart reflecting over 45 'owners' having a claim on each ounce of COMEX Gold neatly illustrates the problem...if everyone wanted 'delivery' of the Gold they thought they owned at the same time, there would not be enough physical Gold to cover the paper Gold that has already been sold.
"Whoever sells what isn't his, must buy it back or go to prison."
- Unless they have a 'Get Out of Jail Free' card from the FED.
Monday, 22 July 2013
Too Big To Jail, Failing Anyway?..........................from Rico
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2 comments:
Rico,
I've been following your posts about gold for a while, and get that things aren't going well in paper gold and such. But I don't really understand all that I'm reading. Is there a link you'd recommend to begin a layman's education? Unlike Bernanke, my lack of understanding isn't job related - I don't work in the financial world ;)
Hi Rico, I'm in the gold mining industry in South Africa. The current gold price has a huge effect on our operations i.t.o. restructuring and what is going on in the gold market is very worrying to me... What would your advise be to the gold producers in light of what is happening to the banks with the paper money and all that. Will the gold price recover or will we go through a situation like in the late 1990's where gold production were limited to only the very few profitable mines? Regards Henk
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